Tietoevry and Maldives Monetary Authority Unveil Instant Payments System

Published 9 months ago

In a significant development for the financial technology sector, Tietoevry Banking and the Maldives Monetary Authority (MMA) have launched an Instant Payment System, Favara. Tietoevry Banking, renowned for its financial technology solutions, acted as the technology partner for this project, designing the necessary infrastructure and systems.

Instant Payment System to Boost Economic Growth and Digitalization

The MMA initiated the project to provide a modern and efficient payment system, aligning with the country’s growth and digitalization objectives. Favara will offer citizens, residents, and businesses a fast, reliable, and secure way to execute financial transactions. It will also lay the groundwork for accelerated fintech innovation in the Maldives and facilitate potential cross-border transactions.

The Instant Payments solution, unveiled in early September, allows individuals and businesses to transfer funds instantaneously, 24/7, anywhere in the country. A complementary Smart Addressing system, Favara ID, simplifies payments by giving users unique identifiers such as a mobile number, e-mail address, or National ID number.

Secure and Compliant Payment Systems

The newly implemented systems adhere to international standards like ISO 20022, ensuring seamless and standardized transactions across borders and financial networks. MMA Governor Ali Hashim expressed his commitment to developing the financial industry in the Maldives and hoped this infrastructure would lead to unprecedented collaboration and innovation.

Enhancing Financial Inclusion Through Electronic Payments

The new system will facilitate financial inclusion in the Maldives by making electronic payments more accessible and broadening access to digital payments. Tietoevry and the MMA anticipate Instant Payments paving the way for a second phase of development, which will introduce Open Banking regulations in the Maldives.

Future Developments

MMA plans to introduce a white-label mobile application catering to both consumers and businesses in the next advancement phase. They will also launch the MMA Aggregation Services, designed in line with Open Banking regulations. Over the next three to five years, working with Tietoevry, the MMA aims to create a centralized Instant Payment ecosystem to boost electronic payments and digital banking.

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